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Side Quest: The Man Who Cried Wolf

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Background

The first time you enter the Blue Palace in Solitude, you'll witness a man named Varnius petitioning the jarl to investigate Wolfskull Cave, where he'll claim he's witnessed "strange noises and lights." The jarl and her advisors won't take the report too seriously, but if you talk to Falk Firebeard afterwards, then he'll offer to pay you if you investigate the cave. This offer will trigger the quest.

Walkthrough

You'll find Wolfskull Cave located to the west of Solitude. Inside, you'll encounter several draugr and necromancers, but neither will appear in large numbers, and so you shouldn't have too much trouble defeating them. In the back of the cave you'll come to a pit (#1) that you'll have to jump into. Beyond the pit to the north you'll find the exit to Wolfskull Ruins (Exit A).

In the Wolfskull Ruins, you'll immediately observe a ritual in progress (#2), where a Ritual Master and several necromancers will be trying to summon and bind Potema the Wolf Queen. You'll then need to make your way up to the ritual platform (#4), following a long and winding (but mostly one-way) path to get there.

At the ritual platform, you'll encounter two necromancers and the Ritual Master. Killing them will break up the ritual and complete the main objective for the quest. To escape from the ruins, you'll need to pull the lever just to the east of the platform. Doing so will lower a bridge that will lead you to a chest ($) and the exit (Exit B).

Note: To reach the first treasure chest ($) in the Wolfskull Ruins, you'll need to jump down to it from the top of a tower.

When you return to Falk Firebrand in the Blue Palace, he'll be happy to hear that you interrupted the ritual, and he'll reward you with some gold. However, at some point later, you'll receive a message from Firebrand, which will trigger the follow-up quest
The Wolf Queen Awakened.

1 - Pit

2 - Ledge

3 - Ore

Around here you'll find a moonstone ore vein (on a ledge) and an iron ore vein (on the ground).

4 - Ritual Platform

On top of the platform, you'll find the book
The Refugees, which will increase your Light Armor skill by 1.

Exits:

Entrance to Wolfskull Ruins.

Exit from Wolfskull Ruins. You'll only be able to reach this exit when leaving Wolfskull Ruins.